4.1 Financial Service Providers Lesson

4.1 Financial Service Providers Lesson

Open Ended

Why do you think financial institutions (or banks) are necessary?

Multiple Choice

Financial exchange is....

• the process of transferring money from one individual or organization to another

• the process of buying goods and services

Multiple Choice

Which type of bank is commonly known as a full-service bank?

• savings and loan association (S & L)

• Internet bank

• mutual savings bank

• commercial bank

Multiple Choice

Which following statement is true of Internet banks?

• Most of their services must be paid for with service charges.

• Their low overhead costs allow them to pay higher interest rates on savings accounts.

• Most Internet banks also staff physical banks and branch offices.

• They have high operating expenses because they must maintain enough staff to be available 24 hours a day.

Multiple Choice

Nonprofit financial cooperative owned and operated for the benefit of its members is called a...

• internet bank

• community bank

• credit union

• S & L association

Multiple Select

Select examples of common financial institutions.

• commercial bank

• credit union

• internet bank

• community bank

• mutual savings bank

Multiple Choice

A checking account allows the customer to...

• withdraw money

• deposit money

• transfer money

• all of the above

Multiple Choice

Plastic card that allows the holder to make credit purchases up to an authorized amount.

• debit card

• credit card

Multiple Choice

What banking service ensures a financial institution will honor a check even if it exceeds the account balance?

• stop-payment order

• overdraft protection

• money order

• check certification

Multiple Choice

Which of the following topics should be considered when shopping for a checking account?

• restrictions and penalties

• fees and charges

• interest rates

• All of the above.

Multiple Choice

The FDIC protects customers by insuring their deposits.

• True

• False